Rotating Tech Chairs: bull or bear sign?

The first storyline this am regarded the departure of Genuity Capital’s top-ranked Tech Analyst, David Hodgson. Having worked for Dundee, Orion Securities and Genuity all in the space of the past five years, it’s reported (by Andy Willis) that Dave is heading off to join us happy folks somewhere on the buyside. Genuity will miss him, as will those portfolio managers who spoke to him several times a day: in one extreme case, the last person that a certain Fidelity PM spoke to each night before he kissed his wife and turned out the light was Dave. No other analyst, not even the infamous Peter Missile, can top that type of respect and reliance.

Soon thereafter came the word that our pal David Wismer has been recruited by BMO Nesbitt Burns to run their Technology Investment Banking Group. David had worked his way up the ladder to be an Executive Director at CIBC World Markets over the past few years, and no one on Bay Street will blame him for getting hired away.

As every CIBC i-banker knows right now, their LTIPs from last December were priced at something like $91/share (3 year vesting period). With CIBC shares going for $68 right now, the stock needs to move up 30% before folks are even flat again. That might take some time, as Canadian bank stocks tend to rise about 10-11% per annum over the long term (before dividends).

With former group head Kevin Dalton now at Blackmont, and David Wismer across the street at BMO, CIBC WM will rely even more heavily on the balance of their tech i-banking team: Mario di Pietro and Marwan Kubursi.

Best of luck to the the two Dave’s, and congrats to their new firms for a good hire.

MRM